What happened
Shareholders of vaccine and antibody therapy specialist Emergent BioSolutions (NYSE:EBS) were feeling a bit queasy on Friday afternoon. That day, the company's stock fell by almost 4.9% after the release of the latest quarterly earnings.
So what
In its fiscal third quarter of 2020, Emergent BioSolutions enjoyed 24% year-over-year growth in total revenue, which landed at $385.2 million. Meanwhile, the company's non-GAAP (adjusted) net income nearly doubled to $119 million ($2.19 per share).
IMAGE SOURCE: GETTY IMAGES.
That top-line figure was disappointing, however, as analysts tracking the stock were collectively estimating $452 million. By contrast, they were anticipating only $2.05 in per-share, adjusted net profit.
Emergent BioSolutions saw a big revenue boost with sales of its two anthrax vaccines, Anthrasil and BioThrax. The company's take from the pair was almost $74 million during the quarter, an 83% year-over-year improvement. Another area where it did well was in its now-busy contract manufacturing business, which increased nearly eight-fold to just over $157 million.
Now what
As for the immediate future, the pharmaceutical company narrowed its guidance for full-year 2020. It now believes it will post $1.52 billion to $1.58 billion in revenue -- it previously forecast $1.50 billion to $1.60 billion.
As for adjusted net income, this should be in the $375 million to $405 million range; formerly this estimate was $340 million to $390 million. Happily, even at the low end of the new range, that would be more than double the 2019 result of $152 million.
Where to invest $1,000 right now
Before you consider Emergent BioSolutions Inc., you'll want to hear this.
Investing legends and Motley Fool Co-founders David and Tom Gardner just revealed what they believe are the 10 best stocks for investors to buy right now... and Emergent BioSolutions Inc. wasn't one of them.
The online investing service they've run for nearly two decades, Motley Fool Stock Advisor, has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys.
